Bill Would Expand HSAs, FSAs

June
17, 2013 (PLANSPONSOR.com) – The Family and Retirement Health Investment Act of
2013 has been presented to the U.S. Senate in an effort to strengthen and
expand health savings accounts (HSAs) and flexible spending arrangements (FSAs).

U.S. Senator Orrin Hatch (R-Utah) and U.S. Senator Marco
Rubio (R-Florida) introduced the bill (S.1031), with counterpart legislation introduced
in the U.S. House of Representatives by U.S. Representative Erik Paulsen
(R-Minnesota).

Hatch and Rubio said the bill would:

Allow a husband and wife to make catch-up contributions
to the same HSA;

Remove the onerous new restrictions on the use of HSA
and FSA dollars for the purchase of over-the-counter drugs;

Clarify the use of prescription drugs as preventive care
that will not be subject to an HSA-eligible plan deductible;

Reauthorize the use of Medicaid health opportunity
accounts;

Promote wellness by expanding the definition of
qualified medical expenses to encourage more exercise and better nutrition;

Allow seniors enrolled in Medicare Part A to continue
contributing to their HSAs; and

Allow for the purchase of low-premium health insurance
and long-term care insurance with HSA dollars.

“Congress created health savings accounts and flexible
spending accounts to help Americans pay for health care. Over the years, these
plans have grown in popularity and it’s well past time Congress act to improve
them,” said Hatch. Streamlining these health care products, he said, will
provide millions of families, workers, and retirees the opportunity to put away
tax-free savings to pay for their personal medical costs.